Transferring money to husband to buy a house

Hi,
My current house in on my wife's maiden name. We are now married for 15 years and will be selling our house.
We are planning to buy a new house, however since we need a loan too, and my wife is now a homemaker, the new house will be on my name.
In such a case, can my wife transfer / gift the money got from our current house sale to my account and in-turn I pay that to buy our new house.
Will there be any tax implications in such case either to my wife or me.
Eg.
Wife bought a house in 2000 ( in her maiden name ) for 10 lakhs
We sell the house for 50 lakhs today ( cheques issued on her name )
Wife transfers/gifts the money to my account
We buy a new house with 50 lakhs from the house proceeds + 30 lakhs loan on my name
What are the Tax implecations ( if any) to either of us
Thanks in Advance
Arjun

Asked 1 year ago in Capital Gains Tax from Mumbai, Maharashtra

Sir in the present case you it is advisable to purchase the new house in Joint name of you and your wife.

Hey Arjun,
Why are you unnecessarily trying to complicate the transaction. As far as I have understood from your query you are planning to sell your old property and buy a new property with that proceeds and save on taxes.
If that is what you want then you can sell the property in your wife's name and buy the new property in your Joint Name i.e yourself and your wife within a period of 2 years from the date of sale.
In this way you can buy a new property, save up on taxes and also avoid the complication.
Regards,
CA ROHIT R SHARMA
MUMBAI.

Hey Rohit and Shyam. Thanks for your response !
Yes, am planning to have my wife as a joint holder in the new property. She will be the second holder ( I'll be primary ) since I'll be taking a loan on my name. Will this work ?
Also, please note, the original property was on my wife's maiden name, whereas the new property will be jointly held in mine and her married name. Will that cause any complications on the Tax front ?
Regards
Arjun

Asked 1 year ago

To add to the above, can my wife make payments from her account that is on her maiden name, or will she need to transfer the proceeds from the sale of the house to either an account in her married name or to my account so as to make the payments ?
Is there any tax liability or complications in either of the above cases ?

Asked 1 year ago

Mr. Arjun
Your wife can make payments from her account which is in her maiden name. There is no problem.
There will not be any tax liability or any other complications

Your wife can be a joint holder of the house and invest the sale proceeds on the sale of the original property to claim exemption u/s 54F, subject to the fulfillment of conditions there under.
Your wife can release the payments from her bank account, even if held in her maiden name and the house is to be registered in her new name, acquired after marriage. No issue.
Your wife can be a borrower and you can be co-borrower and all the payments towards loan can be made from your account itself. No issue.

There are no such complications Arjun. She can transfer money from whichever account she feels like. Just make sure her PAN Number is the same everywhere and I assume you have a Marraige Certificate with you.

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